12 A small aerospace company is considering eight projects:

Project 1 Develop an automated test facility.

Project 2 Barcode all company inventory and machinery.

Project 3 Introduce a CAD/CAM system.

Project 4 Buy a new lathe and deburring system.

Project 5 Institute FMS (flexible manufacturing system).

Project 6 Install a LAN (local area network).

Project 7 Develop AIS (artificial intelligence simulation).

Project 8 Set up a TQM (total quality management)

initiative.

Each project has been rated on five attributes: return on investment (ROI), cost, productivity improvement, worker requirements, and degree of technological risk. These ratings are given in Table 67.

The company has set the following five goals (listed in order of priority:

Goal 1 Achieve a return on investment of at least $3,250.

Goal 2 Limit cost to $1,300.

Goal 3 Achieve a productivity improvement of at least 6.

Goal 4 Limit manpower use to 108.

Goal 5 Limit technological risk to a total of 4.

Use preemptive goal programming to determine which projects should be undertaken.

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TABLE 67 Project 1 2 3 4 5 6 7 ROI ($) 2,070 456 670 350 495 380 1,500 480 Cost ($) 900 240 335 700 410 190 500 160 Productivity improvement 3 2 2 0 1 0 3 2 Manpower needed 18 18 27 36 42 6 48 24 Degree of risk 3 2 4 1 1 0 2 3